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Question Booklet

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Section III: Short Answer <strong>Question</strong>s – 40 marks<br />

Answer the following short answer questions in full sentences. Make sure you use pen<br />

and write clearly.<br />

1 Explain what the law of diminishing returns means. Draw a graph to illustrate the<br />

law of diminishing returns. (5 marks)<br />

2. What are the three factors of production? Now, provide a real life example of each<br />

one. (5 marks)

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